Dodd Frank Flashcards

REG 2014

1
Q

What is considered the biggest change to financial regulation since the Great Depression of the 1930s?

A

The Dodd-Frank Wall Street Reform Act of 2010

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2
Q

What is the goal of the Volcker Rule?

A

Banking Institutions maintain healthy capitalization ratios

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3
Q

How does the Volcker Rule limit banking institutions?

A

Limits banking institutions from owning more than 3% of a hedge fund’s total ownership interest

Limits banking institutions from owning interests in hedge funds that exceed 3% of their Tier 1 Capital (Common Stock + Retained Earnings + non-redeemable; non-cumulative Preferred Stock)

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4
Q

What does the Volcker Rule require banking institutions to disclose?

A

Relationships with hedge funds must be fully disclosed to regulators

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